Chinese Media and Starbucks High Prices

1053 Words3 Pages
bulb-icon

Recommended: starbucks global market entry strategy

Research question:
Is Starbucks high pricing strategy the appropriate positioning in the Chinese market?

Introduction
Starbucks is the largest American company. It has about 20,900 shops all over the world. Starbucks it’s a company that its main purpose isn’t to sell their coffee, instead, Starbucks tries to sell the essence of “feeling at home”.
The company is facing legal issues with china due to their increasing prices on every single product. Chinese media is harshly criticizing Starbucks for its prices. Starbucks is being accused for charging 50% more for some of its products in china than in other countries in the world.
Starbucks according to this problem, said that the cost in every country vary because of different costs, labor, commodities, real state and infrastructure investment.
My paper is going to analyze whether Starbucks has the right to increase the prices in china due to their market, or is Starbucks increasing prices unfairly because of the rapidly increasing economy in china. I will analyze both parts of the story and will use two specific business functions; human resources and finance. I will also compare the prices and expenses of the united states and China.

Findings
The taxes in China depend on the income of each person. If a person gains more, then they will be obligated to pay more taxes. The taxes in the United States depend on the situation and the income that each person has.
Electricity, heating, water garbage etc. is about 163 dollars in the United States. Electricity, heating, water garbage etc. is about 56 dollars in china.
Internet in the United States is 46 dollars.
Internet in china is 21 dollars. Rents in the United States on the city center are 982 dollars per month. Rents in c...

... middle of paper ...

...Jan. 2014. .

"SBUX Company Financials."NASDAQ.com. N.p., n.d. Web. 30 Jan. 2014. .

"Starbucks' pricing furor brings tempest in a coffee pot- News- China Daily Asia."Starbucks' pricing furor brings tempest in a coffee pot- News- China Daily Asia. N.p., n.d. Web. 30 Jan. 2014. .

"Starbucks Is Criticized by Chinese State Media for Higher Prices." The Wall Street Journal. Dow Jones & Company, n.d. Web. 30 Jan. 2014.

"SWOT analysis of Starbucks." Starbucks SWOT analysis 2013. N.p., n.d. Web. 28 Jan. 2014. .

Show More
Related

  • Comparison of Wendy's International, Inc. and Starbucks Corporation Based on Finances

    3667 Words  | 8 Pages

    Starbucks Corporation purchases and roasts whole bean coffees and sells them. As of September 28, 2003 (fiscal year-end 2003), Starbucks operated a total of 4,546 retail stores. Starbucks sells coffee and tea products through other channels, and, through certain of its equity investees. The Company has two operating segments, United States and International, each of which include Company-operated retail stores and Specialty Operations. Starbucks opened 602 new Company-operated stores during fiscal 2003. As of fiscal year-end, Starbucks had 3,779 Company-operated stores in the United States, 373 in the United Kingdom, 316 in Canada, 40 in Australia and 38 in Thailand. ¡]Smart money, 2004¡^

    Read More

  • Starbucks Expansion in China

    1734 Words  | 4 Pages

    This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?

    Read More

  • Starbucks versus McDonald’s Code of Business Ethics, an analysis

    983 Words  | 2 Pages

    Starbucks takes the standards of business conduct very seriously. Starbucks “support(s) the global business ethics policy and provide(s) an overview of some of the legal and ethical standards” (Starbucks Coffee) around the world and in every store they serve their customers. Another important factor is that Sta...

    Read More

  • Starbucks

    1328 Words  | 3 Pages

    Starbucks is currently the industry leader in specialty coffee. They purchased more high quality coffee beans than anyone else in the world and keep in good standings with the producers to ensure they get the best beans. Getting the best beans is only the first part, Starbucks also has a “closed loop system” that protects the beans from oxygen immediately after roasting to the time of packaging. They did this through their invention of a one-way valve which let the natural gasses escape but keeping oxygen out. This gave them the unique ability to ensure freshness and extended the shelf life to 26 weeks. Starbucks isn’t only about the coffee, it’s also about a place where people can escape to enjoy music, reflect, read, or just chat. It is a total coffee experience. The retail outlet has been responsible for much of Starbucks growth and has contributed substantially to their brand equity.

    Read More

  • Starbucks in the Australian Market

    1319 Words  | 3 Pages

    Companies all over the world varies but yet shares a common challenge, that is to solve problem not only effectively and efficiently but also creatively. The P-O-L-C framework which stands for Planning, Organising, Leading and Controlling plays a major role in both the company’s survivability and success. The SWOT analysis looks at both internal and external factors that can affect the Starbucks’s performance. The purpose of this report is to define and analyse how Starbucks respond and should have respond to the change of its external environment on the cofee market,This report will also identify and disscuss how The P-O-L-C framework and can help starbucks to compete and reduce the loss of their failing peformance in the Australian market and how SWOT analysis helps to define some externalities that can be a threat to Starbucks.

    Read More

  • Starbucks: Foreign Market and Diversification

    1275 Words  | 3 Pages

    Starbucks will need to adapt its business practices to suit the Indian market. For example, Starbucks will need to consider the local customs and traditions when designing its stores. Another challenge is the competition in the Indian market. Starbucks will need to compete with local coffee chains such as Cafe Coffee Day and Barista. Starbucks will need to differentiate itself from its competitors by offering high-quality coffee and a unique customer experience.

    Read More

  • Starbucks Financial Analysis

    1484 Words  | 3 Pages

    Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.

    Read More

  • Coffee Supply And Demand

    927 Words  | 2 Pages

    One of the major corporations today that is trying to control a large portion of the supply of coffee is Starbuck. Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world. Starbucks purchases, roasts, and sells whole bean and rich-brewed coffees, espresso beverages, cold blended beverages, an assortment of food items, coffee-related

    Read More

  • Major Problems Facing Starbucks

    1881 Words  | 4 Pages

    One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).

    Read More

  • Force Field Analysis: Force Field Analysis Of Starbucks

    1345 Words  | 3 Pages

    Starbucks has identified high value opportunity in China, India, Brazil and Japan. The large expansion opportunity of twelve billion in China alone is enough to drive Starbucks to expand globally. The organization has planned to double its footprint to 3000 stores in China by 2019 ("Starbucks Details Five-Year Plan to Accelerate Profitable Growth", 2014). Starbucks realizes that eventually there will be a diminishing return on their existing market within the US due to market maturity and there are only two ways to expand through diversification in their offerings and entering new markets. Given the international opportunity for growth and expansive tea market in Asia, the company will enjoy the benefits of the growth opportunity. Management’s decision to continue to grow globally is a driving force that has yielded

    Read More

  • Schultz's Case Study: A Brief Background Of Starbucks

    1431 Words  | 3 Pages

    Starbucks is a worldwide company, known for is delicious brews of coffee and seasonal varieties of tasty drinks for any occasion. Starbucks opened with two main goals, sharing great coffee with friends and to help make the world a little better. It originated in the historic Pike Place Market of Seattle, Washington in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker. The creation of Starbucks’ name came from the seafaring tradition of early coffee traders and the romance evoked from Moby Dick. At the time, this individual shop specialized in the towering quality of coffee over competitors and other brewing services enabling its growth to becoming the largest coffee chain in Washington with numerous locations. In the early 1980s, the current CEO Schultz saw an opportunity for growth in the niche market. After a trip to Italy he brought back the idea of a café style environment of leisure and social meetings to the United States we now see in Starbucks locations today. Schultz ultimately left Starbucks to open his own coffee shop, Il Giornale which turned out to be a tremendous success. Fast forward a year later, Schultz got wind that Starbucks was going to sell all their components of Starbucks including their stores and factories, he immediately acquired the funds to buy Starbucks and linked both operations. Within five years he was able to open more than 125 stores starting in New England, Boston, Chicago, and gradually entered California. He wanted Starbucks to be a franchise system based on the mission of telling the truth and emphasize the quality,

    Read More

  • What Is Starbucks Supply Chain Strategy

    1078 Words  | 3 Pages

    Bruss (2001) argues that the company hopes as well to make new investments in new coffee types. Starbucks has recently developed a new type of coffee called green-coffee. These strategies are created with the objective of support Starbucks’ commitment to buy coffee that has grown and processed by suppliers. They meet certain conditions of social, economic and quality standards. In addition to that, the company is paying additional premiums to those vendors who meet the specific requirements that the company wants.

    Read More

  • Starbucks Case Study

    1287 Words  | 3 Pages

    With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.

    Read More

  • Factors of Tactical Planning and SWOT Analysis of Starbucks

    2365 Words  | 5 Pages

    Millions of Americans these days depend on the glorious caffeine rich nectar provided to them daily by the local Starbucks chain store. With it’s humble roots firmly planted in Seattle Washington, this little coffee shop has turned from a novel idea, into a veritable necessity for Americans on the go. The amazing success of Starbucks can be attributed, in part, to tactical planning. It was through tactical planning that the management team behind Starbucks was able to be so wildly successful. By utilizing their strengths, and capitalizing on trends, as well as periodically evaluating weaknesses and threats, this little coffee joint has become America’s most enjoyable place to get coffee.

    Read More

  • Starbucks' Business Strategies

    998 Words  | 2 Pages

    The strategic vision that Howard Schultz had for Starbucks was "Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow". This s...

    Read More

More about Chinese Media and Starbucks High Prices

Open Document